Is Being a Wholesaler Right For You?

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5 Apr Is Being a Wholesaler Right For You?

As a real estate investor, you may have heard of wholesaling. Wholesaling is one of the most popular short-term investment strategies and is an excellent way for individuals to break into the real estate investing industry. So, what is it? Should you consider becoming a wholesaler?

It might not be quite what you think, and it involves the right resources and real estate investing strategies to become a successful wholesaler. Here's what you need to know!

What Does It Mean to "Wholesale" Real Estate?

No, it's not buying investment properties in bulk!

Wholesaling is the process of finding a property being sold by the owner or a real estate agent, then signing a contract to purchase that property. However, wholesalers do not actually buy the property or complete the sale. Instead, these investors assign the contract to another party, usually an end buyer, before any money changes hands on the purchase.

Because you are not actually buying the property, you don't need as much capital to get started as you would if you were buying a property outright. That's one of the reasons why wholesaling is an attractive way for many real estate investors to get into the business!

How Does a Real Estate Investor Make Money Wholesaling Properties?

While we've talked about partnering with a wholesaler as part of your REI (real estate investing) team, many investors choose to become wholesalers as their primary investing strategy—rather than managing properties or flipping houses. So, if you never own the property and can't make money by using it as a rental property or selling it after years of appreciation, how do you make money through real estate investing wholesaling?

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This is when it pays to have the best resources to help you find and move properties quickly, along with the know-how to make money from investments you never own! To make money as a wholesaler, you sell properties you've contracted at a higher price than the original purchase (or contracted) price. Then, you keep the difference as your "commission" for finding a buyer while the seller receives the money that covers the contracted sale price for the residential property.

Depending on how quickly you can find new properties, set up contracts, then find buyers for those contracts, you can generate significant income as a wholesaler without putting money down on an investment property or managing rental properties to generate cash flow.

Is Wholesaling Right for You?

So, is wholesaling right for you? It depends on your goals and resources to reach those goals!

Do Your Research

As with any real estate investment and strategy, take time to do plenty of research into how this strategy works when learning how to create wealth investing in real estate. Talk with other wholesalers to gain insights into the strategies they apply to build success. Understand everything you can about being a wholesaler before jumping in!

Build Your Network

To move properties quickly as a wholesaler, you need to know how to find ready-to-purchase buyers and investors for the properties under contract. It's critical to move quickly to avoid getting stuck with properties and contracts that you can't move and ultimately become costly liabilities and your financial responsibilities.

Find Properties You Can Move Quickly

Another critical aspect of moving properties as a wholesaler is finding residential homes or buildings quickly and at a high volume. Contracting and selling one property every once in a while will not generate significant income or wealth toward your long-term goals.

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Privy is the best resource wholesalers use to find properties in multiple markets that are ideal for wholesaling! When using our platform, investors can set up criteria ideally suited to help Privy scour the MLS and find properties with sellers ready to find buyers quickly.

If you've built partnerships with rental property owners or fix-and-flip investors, they'll be ready for you to deliver their next properties! From foreclosures, distressed properties, and sellers looking for quick sales, the Privy Advantage helps wholesalers find the properties they need—along with investor insights to make good deals (and more money)!

Partner With Other Real Estate Investors to Build Your Business

Not every wholesaler is a reputable resource for property investors. However, when you become a trusted wholesaler that delivers quality investment properties and helps other investors build their real estate portfolios, your real estate business grows!

Privy Helps Wholesalers Succeed!

Owning properties or managing rental homes aren't the only ways to make money through real estate investment properties. If neither of those strategies seems like the right fit for you, there's no need to rule real estate out of your long-term wealth plan. Take the time to wholesale properties the right way and make sure you create good habits to be on the lookout for good properties and connections to move inventory quickly, then watch your passive real estate income grow!

If you're ready to incorporate Privy into your wholesaling real estate investing strategies, reach out to speak with one of our experts! We'll walk you through how our platform works and why it's a must-have tool to build success as a real estate wholesaler.

Learn about more real estate investment strategies when downloading our free resource, “How to Invest In Real Estate: A Guide!”

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